For their upcoming jersey patch sponsor, the New York Knicks of the National Basketball Association are keeping it in the family.
Sphere Entertainment will be the NBA team’s official jersey patch partner for the 2023–24 campaign, Madison Square Garden Sports announced on Tuesday. When the Knicks play the Boston Celtics at the Garden on Wednesday night to open the season, the patch will make its debut.
James Dolan, the executive chair of Sphere and Madison Square Garden Sports, owns both businesses. The $2.3 billion immersive entertainment complex known as the Sphere, Dolan’s most recent project, made its debut in September.
The jersey patch deal’s terms were not made public.
David Hopkinson, president and chief operating officer of MSG Sports, said in a statement, “The MSG family of companies has an unrivaled portfolio of premium assets, and we are committed to ensuring that the strength of our brands and unique global reach continue to benefit one another in powerful ways.”
All Knicks practice, game, and warm-up jerseys will bear the Sphere logo. They will also be featured on every jersey offered for sale online and in Madison Square Garden’s in-arena retail stores.
Beginning in the 2017–18 season, the NBA’s jersey patch sponsor program has been a significant source of income for numerous clubs. The Golden State Warriors, Brooklyn Nets, and Los Angeles Lakers led the NBA’s top three jersey sponsorships in terms of total revenue generated last season, which was approximately $100 million, according to Sportico.
The Miami Heat reached a similar arrangement earlier this month, and this unusual deal involving two businesses owned by the same person comes after. Micky Arison, the owner of Carnival Cruise Line, and the team signed a jersey partnership.
Just four teams, including the Knicks, lacked a jersey sponsor in the previous campaign.
The Knicks collaborated with Squarespace, a website hosting and development company, for the first five seasons. According to Sports Business Journal, the company reportedly paid between $15 million and $16 million a season for the 2.5 by 2.5 inch real estate on the Knicks jersey.
In a May 2022 earnings call, Andrew Lustgarten, the former CEO of MSG Sports, stated, “Squarespace has been an excellent partner, but we do expect to see some substantial increase when we renew or find a new partner in that space.” “We’re very thoughtful about who would come on our jerseys because it’s very important who the partner is and is close to our identity,” he continued.
SBJ reports that Dolan was reportedly considering paying $30 million for the rights to wear a jersey patch.
The agreement with Sphere, according to Patrick Rishe, sports director at Washington University in St. Louis, is a victory for the Knicks.
He declared, “This is a fantastic opportunity for the Knicks, who are finally taking an unconventional and creative approach.”
That was also expressed by Bob Dorfman, creative director and sports marketing analyst at Pinnacle Advertising.
“The Sphere is the entertainment venue of the future; it’s receiving incredible attention and is an incredible space.” He stated that “the Knicks could definitely use the attention and clout of a facility like that.”
